A contractor's license in Louisiana expires on December 31st. The contractor submits a renewal application on February 15th of the following year. What additional penalty applies?
Correct Answer
C) 100% of license fee
Louisiana imposes a penalty equal to 100% of the license fee for renewals submitted more than 30 days after expiration.
Why This Is the Correct Answer
Louisiana law imposes a penalty equal to 100% of the license fee when a contractor submits a renewal more than 30 days after the expiration date. February 15th is approximately 46 days after December 31st, which exceeds the 30-day grace period, triggering the full 100% penalty.
Why the Other Options Are Wrong
Option A: 25% of license fee
A 25% penalty is not a penalty tier established under Louisiana's contractor licensing rules for late renewals.
Option B: 50% of license fee
A 50% penalty does not correspond to Louisiana's late renewal fee structure. Some candidates guess this as a midpoint, but the statute specifies 100% once the 30-day grace period is passed.
Option D: 10% of license fee
A 10% penalty is far too low and does not reflect Louisiana's licensing penalty structure for renewals more than 30 days late.
Memory Technique
Louisiana late renewal: 30 days = grace period. After 30 days → double up (100% penalty on top of the renewal fee). February 15 − December 31 = ~46 days > 30 days → full penalty applies.
More Louisiana Questions
A contractor in Louisiana completes $85,000 worth of work on a residential project. The owner pays $70,000 but disputes the remaining $15,000. If the contractor files a lien claim, what percentage penalty can be awarded if the contractor prevails in court?
A contractor discovers contaminated soil during excavation that requires special disposal. The disposal cost is $12,000, and transportation is $3,500. If this was not foreseeable from the contract documents, who typically bears this cost under Louisiana law?
A construction worker is injured on a Louisiana job site. The contractor's workers' compensation carrier has 15 days to investigate. If they don't respond within this period, what happens to the claim?
Under Louisiana law, what is the minimum amount of workers' compensation insurance coverage required for construction contractors?
A contractor's employee is injured on a job site in Louisiana. The contractor has workers' compensation insurance. Which statement is correct regarding the employee's rights?
Under Louisiana Civil Code, if a building contract does not specify a completion date, when is the work considered to be due?
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A Class B contractor in Louisiana wants to bid on a project worth $175,000. What action must they take?
A contractor's worker is injured and files for workers' compensation. The injury occurred due to the worker's intoxication. Under Louisiana law, what is the likely outcome?
A general contractor discovers contaminated soil during excavation for a commercial project in Louisiana. Which state agency must be notified?
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